Here’s Why Baxter International Fell 12.3% in October

Shares of Baxter International (NYSE: BAX) fell 12.3% after the company released preliminary third-quarter results in which Baxter said it had started an internal investigation into foreign exchange gains and losses that the company had booked in the past.

The third-quarter numbers weren't too bad. Revenue was up 3% to $2.85 billion, just a hair under the consensus for Wall Street analysts' estimates of $2.86 billion. Improving operating margins helped adjusted operating income increase by 10% year over year to $555 million.

The foreign exchange issues are a bigger problem, mostly because it isn't clear how far the issue might extend.

Source Fool.com